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“You shouldn’t have to be a lawyer to run a business in America today…”

November 17th, 2014 Comments off

SEC-Commissioner-Daniel-Gallagher-crowdfunderinsider=credit-posted-daily-business-news-mhpronews-com-but that’s about where we are.” So says Heritage Foundation Economist David Burton, who explains that the Securities and Exchange Commission’s (SEC) own numbers makes it clear that it takes $2.5 million dollars to access the public capital market, and another $1.5 million in legal fees.

The comments were evoked in part because SEC Commissioner Daniel Gallagher spoke at a Heritage Foundation meeting recently. Townhall  tells MHProNews   that Gallagher says its the SEC’s mission it is to facilitate marketplace growth, yet the SEC’s leaders admits they haven’t done enough to help new companies take off.

Others interviewed by Capitol Source  make it sound far worse that Gallagher states. They say a dizzying array of federal regulations are choking off small businesses from expanding or starting up in the first place.

Citing House Committee on Small Business Chairman Sam Graves report,

  • Small firms bear a regulatory cost of $10,585 per employee, which is 36% higher than the cost of regulatory compliance for large businesses.(2010 SBA study, The Impact of Regulatory Costs on Small Firms)
  • Since 89% of firms in the United States employ fewer than 20 employees, the smallest businesses are shouldering a disproportionate regulatory burden. (NFIB)
  • Small firms pay 67% more to comply with the tax code than larger firms. (SBA Office of Advocacy)
  • Nearly 220,000 small businesses employing more than 26 million workers could be subject to the health care law’s employer mandate (“Health Care Reform and Your Business,” U.S. Chamber of Commerce; Entire Small Business 1 page summary report is linked here).

As industry pros and aficionados know, most manufactured housing operations fall into the small business category described by these sources. ##

(SEC Commissioner Daniel Gallagher photo credit, CrowdFunderInsider)